Asia Pacific Journal of Information Systems (APJIS) is published by the Korea Societyof Management Information Systems (KMIS), which is the largest professional institutein the field of information systems in Korea.

There is a growing interest for ‘Cloud computing’ to cut costs, and help the users focus on their core business instead of being impeded by IT obstacles. As it became IT version 3.0 which represents the era of cloud services and the dominance of a new kind of IT service provider, cloud service providers (CSPs)’ role is more critical as a trusted IT advisor to include cloud migration and integration expertise. However, previous literatures related to cloud computing service have mainly analyzed from customers, although it is hard for customers to totally understand the complex and diverse cloud ecosystem. Therefore, it is an urgent task to mitigate the inhibitory factors in providing the cloud services for activating cloud industry. This study, an exploratory research based on interviews, has derived factors of promoting and hindering the activation of cloud computing from the provider’s perspective, and has analyzed a sequence of cause and effect for each factor. For this, the casual loop diagram was developed to deduce key issues, and propose an alternative. The results of this study are expected to help activate ‘Cloud computing’ in Korea by minimizing the potential negative effects of activating ‘Cloud computing’ industry.